Tupperware Brands Announces Plans to Refinance Outstanding Term Loans

Tupperware Brands Corporation TUP announced today that, subject to market and other conditions, it plans to refinance its $405 million of outstanding term loans with the proceeds of a notes offering also announced today, as well as borrowings under a new $450 million 5-year floating rate credit facility that it intends to enter into concurrently with the closing of the notes offering. The new credit facility would replace the Company's current $200 million credit facility. The Company also announced that it plans to target a Debt/EBITDA ratio over time of 1.5x versus its 1.1x ratio for the four quarters ended April 2, 2011, and that as a result, it anticipates increasing the pace of its share repurchases. For the four quarters ended April 2, 2011, the Company generated net income of $234.3 million and EBITDA of $410 million. In connection with these plans, the Company anticipates increasing the amount it will spend on share repurchases from $40 million to $90 million in each of the second, third and fourth quarters of 2011, in addition to shares repurchased using proceeds from stock option exercises. The repurchases will be made under the Company's existing $600 million repurchase authorization. In February 2011, the Company indicated that it expects its board of directors to revisit its dividend amount annually in the first quarter and that future dividend increases are likely to be approximately in line with any profit increases as achieved. The Company is confirming this dividend policy today.